Current through Register Vol. 49, No. 2, February 2024
SECTION 1.
PURPOSE
The purpose of this Rule is to establish requirements and
standards for continuing education for natural persons licensed as insurance
producers by the Commissioner.
SECTION
2.
AUTHORITY
This Rule is issued under the authority vested in the
Commissioner of Insurance ("Commissioner") by Ark. Code Ann. §
23-61-108, and
the Arkansas Administrative Procedure Act, codified at Ark. Code Ann. §§
25-15-201, et
seq., and Ark. Code Ann. §
23-64-304(a),
as amended by Act 1203 of 2003 and Act 1697 of 2005.
SECTION 3.
EFFECTIVE DATE AND
APPLICABILITY
This Rule shall be effective May 1, 2006, and shall be applicable
to those persons licensed to act as an insurance producer, who must comply with
Ark. Code Ann. §§
23-64-301,
et seq., for the sale of the following types of insurance:
A. Life, and/or accident and health and
sickness (A & H) insurance.
B.
Property and/or casualty insurance.
C. Personal lines.
SECTION 4.
EXEMPTIONS
A. This Rule shall not apply to the following
individuals:
1. Persons holding licenses for
which an examination is not required.
2. Adjusters and limited adjusters.
3. Any limited or restricted license the
Commissioner may exempt.
4. Any
person, licensed as a resident producer prior to July 1, 2003, who is at least
sixty (60) years of age.
5. Any
person, licensed as a resident producer prior to July 1, 2003, who has held a
license as a producer, consultant or broker for a period of at least fifteen
(15) consecutive years.
6.
Third-party administrators who do not solicit business.
7. Non-resident producers, non-resident
consultants, and/or non-resident adjusters.
8. Licensed insurance consultants for life, A
& H, property and/or casualty insurance, personal lines, or for other lines
of insurance;
9. Nonresident
producers in the first full year of resident licensing following the year after
a change in the state of domicile or residency to the State of Arkansas; but
thereafter annually or otherwise in accordance with insurance continuing
education laws, and rules of the Commissioner; and
10. Any producer called to active duty in any
branch of the United States military services including, but not limited to,
the United States Coast Guard and Reserves, during the entire period of active
duty service.
11. As of July 1,
2003, the exceptions contained in Subsections (A)(4) and (5) of this Section
are no longer applicable to insurance producers who became resident licensees
after July 1, 2003, or insurance producers who have let the Arkansas producer
license lapse and have become re-licensed.
12. Individuals (or an appointed guardian or
person with an appropriately worded power of attorney) with grave or
debilitating illnesses or injuries may write for an extension for no more than
twelve (12) months, for completion of the annual CE hours required for a
particular calendar year. The request must be accompanied by a written doctor's
statement confirming the medical history under review and with a medical
estimate as to how long the individual will be unable to function normally
enough to complete the rule requirements. The request from the producer must
include his/her mail or electronic mail note that he/she is voluntarily waiving
the private or confidential nature of the illness or injury in order to qualify
for this extension. With similar documentation, including a signed note from
the attending physician and a privacy note from and signed by the patient,
producers (or the relative's appointed guardian or person with an appropriately
worded power of attorney) may also file for an extension due to the terminal or
debilitating illness of a grandparent, parent, spouse, sibling, or child. The
Commissioner has discretion to grant such time extensions for good cause under
Ark. Code Ann. §
23-64-304(b),
but only up to one (1) year; and may deny requests from any producer failing,
or who has in the past failed, to comply with Arkansas laws or rules, or failed
to comply within any extended time period granted by the Commissioner under
this subsection.
B.
Newly licensed producers for the initial full line of authority must be
licensed for one (1) full year prior to renewal of the license, before
continuing education requirements are imposed. Example: If a new producer
becomes licensed in June of 2005, and the expiration of the license is February
2, 2006, the producer must pay the renewal fee, but continuing education is not
due until February 2, 2007, because the exemption period of 1 year has not been
reached prior to the 2006 expiration date.
SECTION 5.
EDUCATIONAL
REQUIREMENTS
A. Number of Course Hours
Upon the effective date of this Rule, any non-exempt persons
licensed as producers shall, before each annual period on their birthday,
complete those courses of instruction approved by the Commissioner and
equivalent to the following:
1. A
total of eight (8) hours of instruction which must include one (1) hour of
ethics for a life and/or A & H line(s) of authority.
2. A total of eight (8) hours of instruction
which must include one (1) hour of ethics for a property and/or casualty
line(s) of authority.
3. A total of
eight (8) hours of instruction which must include one (1) hour of ethics for
personal lines of authority.
4. A
total often (10) hours of instruction which must include one (1) hour of ethics
for producers holding dual licenses for life and/or A & H as well as
property and/or casualty and/or personal lines.
B. Course Approval
Subject to submission and approval of the Commissioner, the
courses or programs of instruction successfully completed which shall be deemed
to meet the Commissioner's standards for continuing education requirements
are:
1. Any part of the Life
Underwriting Training Council Life Courses Curriculum and Health
Courses.
2. Any part of the
American College "CLU" diploma curriculum.
3. Any part of the Insurance Institute of
America's Program in general insurance.
4. Any part of the American Institute for
Property and Liability Underwriters' chartered Property Casualty Underwriter
(CPCU) professional designated program.
5. Any part of the Certified Insurance
Counselor Program.
6. Any course
offered by Certified Health Consultant (CHC).
7. Any course offered by Registered Health
Consultant.
8. Any insurance
related course approved by the Commissioner and offered by an accredited
college or university.
9. Any
course or program of instruction, seminar, or meeting sponsored by any
authorized insurer, recognized producers' association, insurance trade
association, or any independent program of instruction.
10. Any correspondence courses, including,
but not limited to, correspondence courses offered via the Internet. Any
correspondence course, subject to the following:
a. All correspondence courses must have a
sealed and numbered written examination which measures the licensee's knowledge
of the information. Course providers may also add oral or electronic
correspondence courses, with oral or electronic examinations.
b. All correspondence course examinations
must be proctored.
c. Proctors must
provide an affidavit attesting under oath or affirmation that the examination
was proctored, that the examination was provided in a manner specified by the
correspondence course provider, and that they are not part of or aware of any
efforts to circumvent the requirements of the examination, as provided in
Appendix G.
d. Appendix G must
accompany the licensee's completed Certificate, Appendix E. Correspondence
course providers shall maintain all records on proctors and proctored
examinations.
e. Proctors or
instructors must be a disinterested third party and shall not serve for
examinations of: family members or relatives or dependents, employers or
supervisors, employees or subordinates, partners or joint ventures or
co-owners, current or former teachers or pupils, neighbors or personal friends
or significant others, or for anyone in whom the proctor or instructor has an
economic or other interest in assuring the successful outcome of the
examination.
f. Course providers'
filings must explain how correspondence course exams will not be duplicated for
any two (2) test takers.
g.
Correspondence courses approved and subsequently purchased by the producer,
prior to the re-adoption date of this Rule, shall not be governed by this Rule;
however course providers must contact the License Division to reconfirm credit
hours.
11. Any other
course or program approved by the Commissioner.
12. Subject to approval by the Commissioner,
the active annual membership of the licensed producer in local, regional,
state, or national professional insurance organizations or associations may be
approved for up to two (2) annual hours of instruction. These hours shall be
credited upon timely filing with the Commissioner or his designee appropriate
written evidence acceptable to the Commissioner of such active membership in
the organization or association.
C. Course Hour Valuation
1. The Commissioner shall assign the number
of continuing education hours for which approved courses qualify.
2. Key Components - Filings must include and
clearly demonstrate:
a. Material that is
current, relevant, accurate, and that includes valid reference materials,
graphics and interactivity.
b.
Clearly defined objectives and course completion criteria.
c. Specific instructions to register,
navigate, and complete the course work.
d. Technical support/provider representative
available during business hours.
e.
Process to authenticate student identity.
f. Method for measuring the student's
successful completion of course material and for evaluating the learning
experience.
g. Process for
requesting and receiving CE course-completion certificate.
3. Acceptable Procedures to determine
Appropriate Number of Credit Hours -Select and File One (1) of Two (2) Methods
below per Course:
a. Method A
i. 600-700 words (standard font size) = one
(1) text page
ii.
Textbooks/workbooks/other printed material - one (1) credit for every fifteen
(15) pages
iii. Three (3) screens
with an aggregate total of approximately 600- 700 words - one (1) text page
iv. Forty-five (45) screens - one
(1) hour of credit
v. Divide total
screens by forty-five (45) - total number of credit hours iv. Multiply number
of hours by 1.00 for a basic level course; 1.25 for an intermediate level; 1.50
for an advanced course for additional study time = total number of credit hours
(fractional hours rounded up if.50 or above and rounded down if.49 or
less).
b. Method B
i. Divide total number of words by one
hundred eighty (180) (documented average reading time) = number of minutes to
read material
ii. Divide number of
minutes by fifty (50) = credit hours
iii.
Multiply number of hours by 1.00 for a basic level course; 1.25
for an intermediate level; 1.50 for an advanced course for additional study
time = total number of credit hours (fractional hours rounded up if.50 or above
and rounded down if.49 or less).
c. Method C
Oral Presentations. Providers may use the timed outline method
for speeches and other oral presentations intended for continuing education
credits. Providers should file a detailed description of the proposed subject
of the program or course, including a timed course outline, list of any
resource materials, and list of speakers or instructors or proctors.
D. Deadline
The producer's certificate for course hours completed will be
valid for filing with the Commissioner for two (2) years from the date of the
completion of the course.
E. Course Repetition
Courses may not be repeated within a 2-year period of time. This
does not apply to one (1) hour ethics courses.
SECTION 6.
COURSE PROVIDER
APPROVAL
A. Forms. The following forms
are prescribed by the Commissioner and are attached as exhibits to this Rule.
All forms are available upon request to the Department or via the Department's
web site at
http://www.insurance.arkansas.gov/License/divpage.htm.
APPENDIX A Course Application for Continuing Education
APPENDIX B Course Valuation
APPENDIX C Change in Curriculum or Instructor
APPENDIX D Application for Approval as Instructor
APPENDIX E Individual Certificate of Completion
APPENDIX F Request for Exemption
APPENDIX G Affidavit of Proctor
APPENDIX H Continuing Education Providers Reporting Roster
B. Application for approval as a
provider shall be submitted to the License Division of the Arkansas Insurance
Department not less than sixty (60) days prior to the expected use of the
program. A provider shall include the following information in duplicate:
1. Detailed description of the subject of the
program or course including a course outline, list of any resource materials,
and list of speakers or instructors.
2. Completion of Appendices A and B and D for
the initial certification, and completion of Appendices C and D upon any change
in curriculum or instructor or proctor. Additionally, the Commissioner will
accept, in lieu of Appendix "A" to this Rule, the most recent edition "Uniform
Continuing Education Reciprocity Course Filing Form" published by the National
Association of Insurance Commissioners. Similarly, the Commissioner may accept,
in lieu of Appendices "B" through "H" to this Rule, the most recent editions of
comparable forms published by the National Association of Insurance
Commissioners.
3. Schedules of
classes, seminars and meetings for all locations.
C. Changes in schedules are to be filed with
the Insurance Department no later than two (2) weeks before such program or
course is offered.
SECTION
7.
INSTRUCTOR QUALIFICATIONS
A. A person teaching any approved course of
instruction or lecturing at any approved seminar or meeting shall qualify for
one (1) hour credit for each hour presenting and/or attendance.
B. Instructors must have had specific
insurance training or educational experiences satisfactory and approved by the
State Insurance Commissioner in order to be certified to teach any part of any
approved course. Each instructor must have two (2) or more years of specific
insurance experience and/or education related to and in each part of the
insurance training program in which he instructs and must be approved prior to
teaching any course, or any part of a course, by the State Insurance
Commissioner. Applicants for approval as an instructor shall complete and
submit Appendix D to the License Division of the Arkansas Insurance
Department.
C. No person will be
approved as an instructor who has received disciplinary action by the Arkansas
Insurance Department, the Insurance Department of another state, or any similar
regulatory body or court. The Commissioner shall have the authority to waive
this requirement for good cause shown in a written filing.
SECTION 8.
PROGRAM REVIEW
Representatives of the Insurance Commissioner shall have the
authority to visit a course or program and review its offering at any time
including, but not limited to, curriculum records and attendance
records.
SECTION 9.
FEES AND COMPLIANCE
A. Every person
subject to this Rule shall furnish, in a form satisfactory to the Commissioner,
written certification as to the courses, programs, and seminars of instruction
taken and successfully completed by such person. Such certification shall be
executed by or on behalf of the course provider and shall be in the form
prescribed in Appendix E. Each approved course provider shall make the filing
for the licensee to the Commissioner or his designee by submission of a roster
in hard copy or electronic form prescribed in Appendix H. The provider shall
collect $1 per hour up to a maximum fee of $10 in filing fees from the licensee
and submit the fees with the completed roster form (Appendix H) in a timely
manner, but no later than ten (10) days from the completion of the course of
instruction. The Commissioner may require vendors to submit the producer's
Certificate of Completion of Continuing Education hours on an electronic medium
to the Department, and may require the vendor to submit information to an
outside vendor or other parties contracting with the Commissioner to maintain
and update insurance licensees' continuing education data.
B. Every person subject to this Rule and who
furnishes to the Commissioner or Vendor of the Commissioner, written
certification as to the courses or programs of instruction taken and
successfully completed shall tender a filing fee as directed by the
Commissioner or Vendor of the Commissioner under his approval. A vendor is an
individual, corporation, or legal entity hired by the Commissioner to
facilitate the electronic functions of this Rule.
C. Excess educational hours accumulated
during any annual period may be carried forward only to the next annual period.
Continuing education carried forward to the following calendar year shall
expire upon commencement of the third annual period following completion of the
hours.
D. For good cause shown, the
Commissioner may grant an extension of time during which the requirements may
be completed.
SECTION
10.
PENALTIES
A.
Upon failure of any producer to comply with Ark. Code Ann. §§
23-64-301,
et seq., the Commissioner shall take the steps enumerated in Ark. Code Ann. §
23-64-304(d)
against such individual's license. Failure to comply with this Rule may result
in imposition of penalties contained in §
23-64-216,
as amended, or other applicable laws or rules.
B. Any licensee fined under Ark. Code Ann. §
23-64-304(d)
may request that the Commissioner seal the licensee's records regarding the
fine. The underlying conduct of any licensee whose record has been sealed under
§
23-64-304
shall be deemed as a matter of law to have never occurred, and the licensee may
state that the conduct or fine never occurred.
SECTION 11.
SEVERABILITY
Any section or provision of this Rule held by the court to be
invalid or unconstitutional will not affect the validity of any other section
or provision.
(signed by Julie Benafield Bowman)
JULIE BENAFIELD BOWMAN
INSURANCE COMMISSIONER
STATE OF ARKANSAS
(signed April 27. 2006)
DATE
ARKANSAS INSURANCE DEPARTMENT
APPENDIX A
COURSE APPLICATION FOR CONTINUING EDUCATION CREDIT FOR USE
WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX B
COURSE VALUATION FOR USE WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX C
CHANGE IN CURRICULUM OR INSTRUCTOR FOR USE WITH RULE
50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX D
APPLICATION FOR APPROVAL AS INSTRUCTOR FOR USE WITH RULE
50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX E
INDIVIDUAL CERTIFICATE OF COMPLETION FOR USE WITH RULE
50
CERTIFICATE OF COMPLETION
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX F
REQUEST FOR EXEMPTION FOR USE WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX G
AFFIDAVIT OF PROCTOR FOR USE WITH RULE 50
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APPENDIX H
CONTINUING EDUCATION PROVIDERS
REPORTING ROSTER OF CONTINUING EDUCATION COMPLETION FOR USE
WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
1200 WEST THIRD STREET
LITTLE ROCK AR 72201
PHONE: 501-371-2750
Instructions for Appendix H
Continuing Education Providers Reporting
Roster
For Use with Rule 50
Complete all information on the form 1-13. A response to # 14 is
optional: The provider must attach a check or checks made payable to the
Arkansas Insurance Department for the total amount collected for all producers
taking the course as shown on the roster (Appendix H to Rule 50).
1. Provider Name-complete name of CE
provider
2. Provider Number-the
number assigned to the provider by the Insurance Department
3. Provider Contact-the name of the
individual staff should contact for questions on the form
4. Phone Number-the number for the provider
staff should call for questions on the form
5. Date of Roster Submission-date the form is
being sent to the Insurance Department
6. Total Funds Attached-total of all the
Insurance Department's fees collected for this class
7. License number-license number assigned by
the Department- if unknown, use the licensee's social security number
8. Name of Producer-legal name of the
licensee (full legal name)
9.
Signature of producer-the licensee must sign the roster (wet ink signature
required here)
10. Date of
completion-the date the course was completed by the producer
11. Course Number-the course number assigned
to the course by the Arkansas Insurance Department
12. Credit Hours-the hours credited for
completion of the course when approved by the Department
13. Filing Fees Collected-the total fees
collected from the producer (based upon the $1.00 per hour collected for a
Department Filing Fee for this course)
14. Any additional information that the
Department needs for this producer-this is not a required field
If you should have any questions regarding this form, please
contact the Department License Division at 501-371-2750; or email
insurance.License@arkansas.gov.
Edition 05/2006
